The reporting on the sale of digital assets by brokers was scheduled to begin on or after January 1, 2023, but has been delayed to 2025 or later. This past August the IRS released proposed regulations on reporting by brokers for sales or exchange of digital assets, which aim to align with the reporting of other financial assets. The sales of digital assets would require brokers, including digital asset trading platforms, digital asset payment processors, and certain digital asset hosted wallet providers to report gross proceeds on a newly developed Form 1099-DA and to provide payee statements to customers. Written comments for the proposals were submitted until October 30, 2023, and a public hearing was scheduled for November 7, 2023.
Digital Assets